The AUDUSD pair initially broke higher during the course of the session on Wednesday, but found enough resistance near the 0.74 level to turn things back around.

With that being the case, the market ended up forming a shooting star which of course is negative.

If we break down below the bottom of that candle for the Wednesday session, we are sellers as the market should then head back to the 0.7250 level given enough time.

Ultimately, we believe that this market continues to grind sideways with a negative bias. The fact that we could not gain while gold did tells us just how soft the Australian dollar is.

Editor’s Note: Equity investors/traders can use the Currency Shares Australian Dollar Trust (FXA, quote) ETF to take positions in the Aussie dollar without a FOREX account.  The ETF looks to track the price of the Aussie dollar (AUDUSD), minus ETF fee. The fund seeks to reflect the price of the Aussie dollar (AUDUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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